Kentucky's seasonally adjusted unemployment rate remained unchanged at 4.7 percent in July 2026, according to data released by the Kentucky Education and Workforce Development Cabinet. The state's Kentucky Center for Statistics reported the figure held steady compared to June but rose slightly 0.1 percentage points from July 2025.

The nation's unemployment rate fared better, declining to 4.1 percent in July from 4.2 percent in June, according to the U.S. Department of Labor. Kentucky's labor force grew to 2,103,837 in July, an increase of 6,183 individuals from June, with 2,004,231 people employed, up 4,760 from the previous month.

"July represents the first month of 2026 with an increase in the number of people employed," said University of Kentucky's Center for Business and Economic Research Director Mike Clark. "Kentucky saw both more people reporting that they had a job and more people searching for employment."

In separate business establishment surveys, Kentucky's nonfarm employment increased by 2,300 jobs in July to 2,033,300 compared to June. However, nonfarm employment remained down 2,600 jobs compared to July 2025. Locally, Fayette County's unemployment rate decreased from 4.6 percent in June to 4.4 percent in July, not seasonally adjusted.